reset() and save() question

Yesterday my 5 pucks arrived. @gordon - superb!

Started to play around a bit and just got stuck at a thing that happened to my pico before:

I tried out a demo, now I want to get rid of it.
So I connect and do this:

Connected
>
>dump()
var isOn = false;
setWatch(function () {
  isOn = ! isOn;
    analogWrite(LED1, (isOn) ? 0.02 : 0);
}, "D0", { repeat:true, edge:'rising', debounce : 49 });
setBusyIndicator(D3);
digitalWrite(D3, 1);
pinMode(D29, "input_pulldown", true);
=undefined

Call reset() to kill it:

>reset()
=undefined
 _____                 _
|   __|___ ___ ___ _ _|_|___ ___
|   __|_ -| . |  _| | | |   | . |
|_____|___|  _|_| |___|_|_|_|___|
          |_| http://espruino.com
 1v89 Copyright 2016 G.Williams

Call save() to persist the "clean" state:

>save()
=undefined
Erasing Flash.....
Writing....
Compressed 32000 bytes to 1372
Checking...
Done!

Should be gone now, or not?
But look here - still there:

>dump()
var isOn = false;
setWatch(function () {
  isOn = ! isOn;
    analogWrite(LED1, (isOn) ? 0.02 : 0);
}, "D0", { repeat:true, edge:'rising', debounce : 49 });
setBusyIndicator(D3);
digitalWrite(D3, 1);
pinMode(D29, "input_pulldown", true);
=undefined
> 

So - how can I get rid of the running code?

Maybe I did not understand the concept of reset() and save() properly...